Argentina: COVID 19 emergency relief program for employers

Resolución General 4746/2020 allows employers based in Argentina to register for benefits under the Emergency Work and Production Program (“ATP”).

However, those who receive support under the program are also subject to numerous restrictions:

  • Employers cannot distribute dividends for fiscal years closed from November 2019.
  • Employers cannot buy back their shares either directly or indirectly.
  • Employers do not have access to the financial market to exchange pesos for foreign currency.
  • Employers cannot make payments, directly or indirectly, to beneficiaries whose place of residence, location or domicile is in a “non-cooperative jurisdiction” or a jurisdiction with little or no tax.

These restrictions apply for a period of 12 months for companies with up to 800 employees and for two years for companies with more than 800 employees. Companies with more than 800 employees may not increase the amounts of salaries, advances or fees that they pay to members of the corporate administrative bodies for more than 5% for two years.

Companies that register for the emergency aid program have to make corresponding system adjustments in order to comply with the rules mentioned above.

 

These regulatory changes could affect your business with view to customizing or support of your ERP/SAP system. Please contact us to learn about possible necessary reactions to the changes – we are happy to assist you!